Apple Could Grab 5% of HDTV Market - Analysts.

Nobody knows what exactly is Apple TV-set and how competitive it is in the light of emerging smart TVs with stereo-3D support and other advantages. But this does not stop financial analysts from making predictions about possible capture of 5% of the HDTV market by Apple, which in case of $1500 average selling price (ASP) per unit, would add $17 billion to Apple's annual revenue already in 2013.

"However, for the sake of argument, according to our calculations, the LCD-TV market could reach about 230 million units in calendar 2012. If one were to assume Apple could get 5% share of this market over time, with an ASP of $1500, the new segment would add over $17 billion in revenue or almost 10% of our FY13 estimate of $183.1 billion," wrote Ben Reitzes, an analyst with Barclays Capital, reports Tech Trader Daily blog.

Nothing particular is known about the Apple TV at present. In fact, it is unknown whether the company even plans to release it this year. But like a lot of Apple's products, it may become a major success for the company and will transform the whole market of TV-sets. But that is not cast on stone as TV-makers are also not standing still and will compete against Apple vigorously. One thing that Apple should count on is a unique set of capabilities that will be hard to copy in a short period of time.

"Apple’s eventual television could be so much more than a TV – including gaming, video communication, content delivery, apps, computing and all the capabilities of the current Apple TV – it is really not fair to compare it to products already on the market," added Mr. Reitzes.

One of the main features of Apple's television set is projected to be an ability to quickly search for content from numerous sources, including Apple's own iTunes. Given the fact that the user experience should be integrated, this feature alone presents a number of challenges. In order to provide unique capabilities and simplicity, Apple TV will likely integrate iCloud as Siri along with motion sensing support for content sharing and control purposes. In a bid to be able to control the TV using iPhone, iPad or iPod, the TV will be compatible with Apple's AirPlay technology.

Apple traditionally remains tight-lipped about its future television set, nobody knows whether it will receive content using radio broadcast, cable or the Internet. Actual peculiarities and capabilities of Apple TV will be determined after the company negotiates with media partners.

The Apple TV project has been discussed by market observers for several years already, this year Apple's former chief executive officer Steve Jobs confirmed his biographer Walter Isaacson that the work on TV was underway as well as that the Apple TV would have a simple user interface and would wirelessly synchronize content across all Apple devices.

Apparently, Apple already has a prototype TV in the works and may introduce a product for sale by late in 2012 or in 2013, according to some analysts., Apple is investing in manufacturing facilities and securing supplies of LCD screens of up to 50".

It remains to be seen whether the Apple TV device will also support high-definition gaming as presently Apple's ecosystem clearly has a weak spot due to absence of high-quality games on Macs and lack of a game console in Apple's lineup.

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Apple is going to have a hard time with their own Apple TV. Sure their Apple TV box shows a glimpse what Apple might do, but that is only a small part. The broadcast studios is filled with bureaucratic layers that not even Apple will be able to make some dent. Hulu.com tried to dent the layers, but Hulu can not get permission from all the studios to display TV shows. CBS is probably the worst studio and shows an example that studios does not want to play the Internet game or Web TV game. FOX is another studio that has some problems. They force Hulu viewers to wait over a week to watch a show.

The only good thing for Apple is their software and their products that acts like that Apple has sprinkle pixie dust. The TV will be Apple's huge challenge and I do not think pixie dust will help.